CIT Maritime does its first bareboat charter financing

MAY 21, 2014 — CIT Group Inc. (NYSE: CIT) says that CIT Maritime Finance, with the assistance of RS Platou Finans, has completed a $49 million financing through a bareboat charter arrangement with Grieg Shipping II AS, a subsidiary of the Grieg Star Group AS (Grieg Star), the second largest open hatch general cargo carrier owner in the world.

The subject vessel was Star Lygra, a 50,700 deadweight tonnage open hatch general cargo carrier. Financing from CIT was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. Terms of the transaction were not disclosed.

"We're pleased to acquire this state-of-the-art vessel and bareboat charter it to Grieg Star, one of the largest and most reputable owners of open hatch general cargo carriers in the world," said Svein Engh, Managing Director and Group Head of CIT Maritime Finance. "This transaction represents our first financing through a bareboat charter and reflects our ability to structure a tailored financing solution that affords Grieg Star purchase options and increased capital flexibility."

Star Lygra, delivered December 2013, was built at the Hyundai Mipo Dockyards shipyard in South Korea and is part of a series of 10 L-class vessels. The L-class vessel represents the 12th generation in the Grieg Star Open Hatch concept. The open hatch design is a well-proven concept and is tailor-made for transportation of forest products, steel, containers and other oversized cargoes. The vessel is equipped with four cranes with power swivel for steady cargo handling. The open hatch allows for completely unobstructed cargo loading and handling. The ship is 670 feet long and 105 feet wide with nine cargo holds. Fully loaded, the ship can reach speeds of 15.5 knots, or a little more than 17 miles per hour.

Camilla Grieg, CEO of Grieg Star, said, "This customized transaction complements our existing portfolio of more than 30 owned ships and will allow us to service the increasing transportation demand around the world. We have more than 50 years of experience in the maritime sector and are pleased to complete our first transaction with Svein and his team, whose deep industry knowledge served us well."